Pages

Wednesday, February 09, 2011

Revenue boost for OTML

MINING giant Ok Tedi Mining Ltd has posted its financial statements ending the fourth quarter of last year with K5.1 billion in full year sales revenue – an increase of 27% from 2009 – reflecting higher copper and gold prices, The National reports.

The financial report stated that the full year copper concentrate shipments were 9% higher than 2009 with no river constraints.

The export shipments of copper-gold concentrates were 24% higher in the fourth quarter (168,731 tonnes) than in the third quarter with 136,228 tonnes.

This result was mainly impacted by lower head grades of copper (2%) and gold (6%), and also by the 16-day industrial action taken by union workers in April that resulted in a 9% lower mill throughput.

Total gold production of 15.6 tonnes was 6% below the 2009 production rate; however, OTML remained within the top three of PNG’s gold producers.

OTML also realised for this period that the average copper price was US$3.68 (K9.65) per pound, compared to US$2.44 (K6.40) in 2009.

The report said net cash generated before dividends was up by 96% compared to the previous year, mainly due to higher metal prices and volumes shipped.

Dividends paid were K1.687 million which included K1.387 million for the benefit of PNG interests.

OTML payment of mining royalties were 40% higher than 2009, with the Fly River government and the mine area landowners each receiving K46.8 million.

The mining company had also paid out a total of K920 million in taxes last year.

The report stated that the state was finalising feedback on the detailed mine closure plan submitted in December 2009 and advised OTML that a response would be given this month.

The Inmet share buy-back is expected to be completed by the end of last month with OTML buying back Inmet’s 18% shareholding for a lump sum payment of US$335 million and cancel the shares.

No comments:

Post a Comment